A Dollar Saved is a Dollar Earned? Hardly

A Dollar Saved is a Dollar Earned.  Or Is it?

Have you ever stopped to think about what it takes to put one dollar in your bank account and then to keep it?

First you have to earn a dollar.  But that dollar is taxed in many ways that include:

  • Federal Income tax
  • Federal FICA tax – Social Security and Medicare
  • State Income tax
  • Local City tax

The point of this is that you need to earn about $1.30 dollars in order for one dollar to really end up in your bank account.  That, however, is just the beginning.  After the dollar is in your account, there’s more forces acting against you to keep that one dollar:

  • Inflation
  • Interest payments
  • Federal Gas tax – excise tax
  • State Gas tax -excise tax
  • Sales tax
  • Automobile License plate tax
  • Property Taxes
  • Federal Capital Gains Taxes
  • Inheritance taxes
  • Gift taxes
  • Import Tariffs
  • Highway/road tolls

My goodness, where does it end?  Don’t get me wrong, we want to do our fair share to support societal needs, but this seems like there’s no end to the forces acting against that one dollar earned vs. the one dollar kept.  We have some control and some influence on the impact of these forces acting against us.  If you want to be FIRE’d Up, you may need to educate yourself, establish your goals and make a plan on how to achieve your dreams, then make it happen. 

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